Talking at the recent National Retail Federation (NRF) 2012 retail conference, PayPal’s vice-president and general manager of retail and prepaid Don Kingsborough said the company is investing in near field communication (NFC) as a method of payment via secure elements in smartphones. It is also investing in its own payment cards, on which consumer data is stored via cloud solutions.
Kingsborough says PayPal plans to subsidise its new service, implying merchants may pay less than they do now for transactions through established debit and credit card payment processors. To attract the global retailers that PayPal is targeting, Kingsborough says he plans to share data on purchases and shopping activity.
EBay, PayPal’s parent company, has set a public goal of 20 major retailers testing the POS (point-of-sale) service by the end of 2012. The Home Depot, the largest home improvement retailer, is running a test already and Office Depot is planning one.
This is a great example of how the digital and physical retail worlds are converging. Look out for LS:N Global’s coverage of new technologies in retail in our NRF 2012 show report.